SILVER TRADE ALERT (2:45 pm EST)
I've decided to unload our silver short positions today as the price of silver is just a little above where we entered, and we can cover these positions with very little loss. As I mentioned in my last blog, silver is looking a little less bearish than gold right now, and there is a chance of it running up towards the $26 area (which is where we originally had intended to short it but were not given the chance). The trading is getting a little tricky here. While it is possible for that $26 resistance to hold and send the price back towards the $22 low, the recent stabilization and strengthening of both gold and silver is increasing the likelihood of a break through $26 sooner than we had expected. Should this breakthrough occur, the loss in our short positions would be too great (remember silver moves faster than gold).
For these reasons I am bailing out of our silver short positions today, but we will maintain our gold short positions for now. We established our gold short positions closer to our stop loss point (at the $1500 resistance) than we did with our silver shorts, so we can afford to wait and see if that resistance holds and turns the price back down towards the $1400 (or lower) area again. Note that momentum signals are still strongly bearish in both gold and silver right now, but there are other technical signals and signs indicating that this could be changing soon.
I've decided to unload our silver short positions today as the price of silver is just a little above where we entered, and we can cover these positions with very little loss. As I mentioned in my last blog, silver is looking a little less bearish than gold right now, and there is a chance of it running up towards the $26 area (which is where we originally had intended to short it but were not given the chance). The trading is getting a little tricky here. While it is possible for that $26 resistance to hold and send the price back towards the $22 low, the recent stabilization and strengthening of both gold and silver is increasing the likelihood of a break through $26 sooner than we had expected. Should this breakthrough occur, the loss in our short positions would be too great (remember silver moves faster than gold).
For these reasons I am bailing out of our silver short positions today, but we will maintain our gold short positions for now. We established our gold short positions closer to our stop loss point (at the $1500 resistance) than we did with our silver shorts, so we can afford to wait and see if that resistance holds and turns the price back down towards the $1400 (or lower) area again. Note that momentum signals are still strongly bearish in both gold and silver right now, but there are other technical signals and signs indicating that this could be changing soon.
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